Running a small business on PAN card do i need to form a firm?

804 votes

First of all let me make this clear that sole proprietorship per se do not requires any formal registration which other type of business do requires. Since your earning as of now is low so you are right with your decision and shall continue with this model as long as you are not making it big in the market. As far as compliance part is concerned as to what all should you need to take care of while doing this business then you need to have - - a PAN Card to do business (you already have that), - a Bank account which reflects the expenditures and earning of your business, - an address along with its proof from where you are dealing in your business, and - registration under service tax (since web hosting and providing servers is a service based business) Most above pay due taxes to the Government of India as applicable under service tax as well as income tax if your earning crosses exempted limit. My best wishes for your business.

Advocate Pulkit Prakash LawRato